Getting Started Planning for Your Financal Future
First, A Little Self Analysis of Your Financial Situation
Why are you even here, reviewing this website?
It's probably because you know you need more information regarding your personal finances. And you want something that requires money - a house, a new car, a wedding, a family, more education, a vacation or future financial freedom (I'm opposed to the word "retirement", sorry.)
In other words, you have a goal and that's the true beginning of the journey. Glad you're here to get better insight into putting your personal financial plan in order.
Financially, where are you now?
It's time to take a look at your "cash flow". How much money comes in and how much money goes out and, more importantly, where does it go. If you haven't put together even a simple budget showing cash in and cash out, well, it's time.
Do you have specific goals?
You need to associate dollars with desires so the plan you build will match your goals. It's important to understand "total costs" which go beyond the initial purchase price. The concept of "total cost of ownership" even applies to having kids! Click this link to see the estimated annual cost to raise one child. Yikes!!!
And let's talk about the future - I'll use the "R" word, retirement. If you see a carefree future of all play and no work you've got to take a hard look your future cashflow. Plus, there are additional costs associated with healthcare and all that time on the golf course, pickle ball court, with the grandkids or traveling around the world. Leisure time is not free, trust me.
Do you have a roadmap for your financial future?
If you don't have one then it's time to start building your personal financial plan. You can start by 1) understanding your cash flow, 2) writing down your short and long term goals, 3) creating a budget and 4) most importantly, adhering to your budget as closely as you can.
Your plan may cause you to rethink your goals or take actions to reduce expenses or increase income. Just remember, you're in control of your future.